Peel Hotels

Peel Hotels perked up 1p to 85p after reporting a 35% profits rise for the half to 1 September, despite tough times for the hotel industry. Pre-tax profits were £989,590 (£734,028) on turnover lifted 20.1% to £5.57m. Chairman Robert Peel also pointed out that 'RevPar' (revenue per available room) rose 10.2% on a larger number of available bedrooms than last year. The results were boosted by a few months' trading from the recently-acquired Avon Gorge Hotel in Bristol, which overlooks the Clifton Suspension Bridge, and the George Hotel in Wallingford from 10 June onwards. Peel had managed the 2 for several years under a contract with Grace Hotels. It paid £9.4m in cash, taking the number of hotels it owns to 6. In December the company raised just over £3m via a placing at 87p a share. Analyst Peter Joseph of house broker KBC Peel Hunt predicts £1.8m pre-tax for the year, giving earnings of around 10.5p for a p/e of 8. At 85p, the shares are trading between 52-week highs and lows of 96.5p and 79.5p.

Sector: Travel & Leisure

Companies: Peel Hotels

Market cap: £7.4m

PE Forecast: 8

Share price: 85p

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